Copyright by Debra L. Zahay 2002 Acquiring and Retaining Customers and Branding using Marketing...
-
Upload
gyles-boone -
Category
Documents
-
view
222 -
download
3
Transcript of Copyright by Debra L. Zahay 2002 Acquiring and Retaining Customers and Branding using Marketing...
Copyright by Debra L. Zahay 2002
Acquiring and Retaining Customers and Branding using Marketing Technology
Debra ZahayAssistant Professor of Marketing and Electronic Commerce
North Carolina State UniversityFebruary 26, 2002
Thanks to Yesmail.com and Mary Lou Roberts
Copyright by Debra L. Zahay 2002
Marketing
• An interactive process whereby firms’ create value for their customers and profits for themselves
• In Emarketing, we use technology to facilitate this process
Copyright by Debra L. Zahay 2002
The Promotion MixThe Promotion Mix
AdvertisingAdvertising Sales PromotionSales Promotion
Direct PromotionDirect Promotion Public RelationsPublic Relations
Elements of the Promotion MixElements of the Promotion Mix
Copyright by Debra L. Zahay 2002
Customer Acquisition
Search engines
Online advertising& mktg.
Offline Advertising
Acquire customers
Copyright by Debra L. Zahay 2002
Online Advertising
Online Advertising Banners Interstitials Superstitials
E-Mail Advertising
Off-Line Advertising
Affiliate Programs
Viral Marketing
Newly- Acquired Customers
Portal Deals
Copyright by Debra L. Zahay 2002
SEARCH
• Directories (Yahoo!, Excite, commercial directories)
• Search Engines (Google, . . .)– Keywords– Title Tags– Meta Tags
Copyright by Debra L. Zahay 2002
<html> <head><title>New Page 2</title><meta name="GENERATOR" content="Microsoft FrontPage 3.0"></head>
<body>
Copyright by Debra L. Zahay 2002
Total US marketingexpenditures
(billions)
Direct Marketing - Enormous and Growing
1998 2002
Projected Internet marketing expenditures
(billions)
$18.5
$122
$163Direct Marketing
BrandAdvertising
Source: DMA Source: Forrester Research
$1.8
Direct Marketing
BrandAdvertising
Copyright by Debra L. Zahay 2002
Email is Cheaper, Faster and More Effective
DirectMail
Lower Cost
DirectMail
$1.25
$.25
Higher Response
Response ratesCost per unit
DirectMail
3-6 weeks
3 days
Quicker Results
Time required for75% of responses
5-15%
1-2%
Source: Forrester, DMA75-90% lower costSource: GartnerGroup Source: YesMail, DMA
Copyright by Debra L. Zahay 2002
Email Marketing - Rapid Growth Predicted
Revenues(billions)
Email services market revenues
012345
’99 ’00 ’01 ’02 ’03 ’04
Email retention servicesEmail acquisition services
$4.8 Billion
Source: Forrester Research
Copyright by Debra L. Zahay 2002
What’s Going on Here?
Email is changing the face of direct marketing . . .
Copyright by Debra L. Zahay 2002
Creating a True 1-to-1 ChannelWhy?
– Cost-efficient
– Effective
– Can be rapidly deployed
– Produces real-time, immediate results
– Ideal testing medium
• Offers, message/copy formats, pricing, product features, list sources, etc.
– Trackable, measurable and ROI-driven
• Track individual behavior – click-through to conversion– Email offer, shopping cart, checkout, register, confirmation, order
Copyright by Debra L. Zahay 2002
Creating a True 1-to-1 ChannelWhy?
– Can be personalized• Deliver highly relevant and targeted content on
an individual basis
– Delivers direct and indirect reach
• Hits decision makers the way postal mail cannot– Referrals, viral marketing, WOM
– It’s everywhere
• 83% of respondents to recent Price Waterhouse Coopers study said email is their primary reason for using the Internet
*Email Marketing Association (EMA)
Copyright by Debra L. Zahay 2002
Wide Range of Strategic Applications
1. Research1. Research
2. Awareness2. Awareness
3. Branding3. Branding
4. Lead Generation4. Lead Generation5. Customer Acquisition5. Customer Acquisition
6. Customer Management & Communication
6. Customer Management & Communication
7. Up-sell & Cross-sell7. Up-sell & Cross-sell
8. Retention & Loyalty8. Retention & Loyalty
Customer Acquisition Customer Acquisition and Relationship and Relationship
ContinuumContinuum
Copyright by Debra L. Zahay 2002
• Study of companies doing ecommerce revealed:– 66% Use email for promotions and
discounts– 48% Newsletters– 34% New products– 28% Marketing & advertising– 24% Alerts and reminders– 8% Market research
…and Tactical Applications
Source: Forester Research, 1999
Copyright by Debra L. Zahay 2002
How is This Possible?
Email + Permission From intrusion to invitation
From spam to effective direct marketing
Copyright by Debra L. Zahay 2002
BRAND = BRAND EQUITY
Brand Awareness
• Brand Recognition
• Brand Recall
Brand Image
• Favorability
• Strength
• Uniqueness
Copyright by Debra L. Zahay 2002
Branding/Awareness
NextMonet.com
• Goal to introduce new online art gallery and build brand awareness
• Formal, classy tone
• Includes multiple calls to action to:
- Browse site
- Register to win free trip
- Become a member
- Check out feature article
Copyright by Debra L. Zahay 2002
Customer Acquisition
Eddie Bauer
• Goal to drive potential buyers to website rather than in-store
- Close sale online via direct selling
• Call-to-action is to Shop Now
• Specials featured to provoke impulse buying
Copyright by Debra L. Zahay 2002
Customer Acquisition Case StudyOshKosh B’GoshGoals
Increase traffic for new online family apparel store
Test scenarios before committing significant budget dollars
Program Test variables included:
Message length Format (HTML vs. text) Offer type Target audience selection
Results Response rates ranged from
2.6% to 16.4%, Highest results from the HTML
version of a $10 off offer to people interested in family/children
Program Response Short copy, $5 offer, Shopping
6.8%
Short copy, $10 offer, Shopping
6.6%
Long copy, $5 offer, Family/Kids
8.4%
HTML, $5 offer, Family/Kids
6.5%
Long copy, $10 offer, Family/Kids
11.2%
HTML, $10 offer, Family/Kids
16.4%
Long copy, $5 offer, Shopping
2.6%
Long copy, $10 offer, Shopping
3.1%
HTML, $5 offer, Shopping
3%
HTML, $10 offer, Shopping
3.8%
Copyright by Debra L. Zahay 2002
Up-selling/Cross-sellingSmarterKids.com
• Educational toy company
• Goal to encourage additional holiday sales from current customers
• Limited time offers good only for that day
• Series (1 per day, for 12 days) sent to people who bought during the 1999 Holiday season
• Personalized
Copyright by Debra L. Zahay 2002
Customer Retention
Nokia• Goal to engage
current Nokia cell phone customers who gave their permission
• eNewsletter to encourage interaction with the product
• user tips
• order accessories
Copyright by Debra L. Zahay 2002
OTHER ONLINE TECHNIQUES
• Affiliate Programs
• Portal Deals
• Viral Marketing www.ideavirus.com
• Inexpensive
• Expensive
• Hard To
Execute
Copyright by Debra L. Zahay 2002
So, What’s Next?
Get ready for the next generation of email marketing!
1st Generation
Broadcast, SPAM:
• High-volume/low cost
• Send and forget
• Generally not relevant
2nd Generation
Permission Marketing:
• Responsible
• Segmented
• Usually Relevant
• Value add
3rd Generation
Interactive Marketing:
• Focus on the individual
• Content personalized to recipient
• True 1-to-1
• Dialogue-based
• Closed loop
• “Mail Worth Opening”
Copyright by Debra L. Zahay 2002
STRATEGIC IMPLICATIONS
• Continued Customer Acquisition Is Essential• Retention Is Less Expensive Than Acquisition• Use Multiple Acquisition Techniques OnLine and OffLine• Cost Effectiveness Does Matter• Branding Is Possible On The Internet